Minesto and Sev renew and update Power Purchase Agreement – underlining the value of tidal energy in the Faroese energy mix

Press releases

10 juni 2024

Leading ocean energy developer Minesto and pioneering Faroese utility company Sev have jointly renewed and updated the power purchase agreement (PPA). The price-level is adjusted to denote the total system value of tidal energy in the future 100% renewable energy mix in the Faroe Islands.

Initially signed in 2020, the PPA between Minesto and Sev is now updated and renewed for two more years after approval from the Energy Agency in the Faroe Islands (Orka). The electricity price-level is upgraded to reflect the total system value of tidal energy.

The PPA covers the capacity of the three tidal power plants in Vestmanna and is an extension of the first off-taker relationship in the world where energy from Minesto’s unique tidal energy dragons is supplied.

”The updated PPA is on a price-level that underlines the value of tidal energy in energy mix in the Faroe Islands,” said Dr Martin Edlund, CEO of Minesto.

“We are pleased to sign a renewed power purchase agreement with Minesto at this point. We are very hopeful that tidal energy will play a vital role in the future energy mix in the Faroe Islands and in our efforts to reach 100% sustainable electricity generation by 2030,” said Terji Nielsen, Head of R&D at Sev.

Document: Press Release